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Renting a Place BenefitsFLEXIBILITY: It’s easier to move without long-term commitments.LOWER UPFRONT COSTS: Renting usually requires a security deposit and the rst month’s rent. This tends to be a signicantly smaller amount than a down payment and closing costs for a home purchase.MAINTENANCE: When the plumbing goes awry or the dishwasher breaks, you can literally wash your hands of the problem while your landlord does the dirty work – or pays someone else to do it.NO PROPERTY TAXES: When you rent, you don’t pay property taxes or homeowner’s insurance.Time. The Great Decider.When it comes to making the decision between renting and buying, time will likely play the biggest role. Most experts will refer you to the concept of the breakeven horizon. Sounds pretty epic, right? The truth is, the breakeven horizon IS epic. It’s the time when a homeowner has reached the point where all of the investments they’ve made in their home (the down payment, closing fees, real estate agent commissions, repairs, etc.) are balanced by the equity the home has gained. And from there, the average homeowner makes money on the deal. In the early years of a mortgage, a large portion of your payments goes toward interest rather than principal, meaning you build equity slowly at rst. However, the longer you stay, the more you pay down the principal and build equity. Real estate generally appreciates over time, and staying longer increases the likelihood of beneting from this appreciation, potentially making a prot when you sell. Short-term market uctuations can affect home values, but staying longer mitigates the risk of having to sell during a downturn.So, when does the average homeowner reach their breakeven horizon? It depends on your down payment, interest rate, and some other factors, but recent estimates hover around 10 years in the Denver area. From a practical standpoint, staying in one place allows you to establish roots, build relationships, and become part of the community. Owning a home gives you the freedom to make improvements and customizations that suit your lifestyle, which can be more rewarding if you plan to stay long-term. For personal and family planning, staying in one home provides stability and consistency for children in terms of schooling and social connections. It also makes sense if you have a stable job and foresee staying with the same employer or within the same region.Long-term benefits include: • Cost efciency, as owning a home can be more cost-effective than renting over time. • Mortgage payments can be xed, while rents often increase. • Homeowners can also take advantage of tax deductions on mortgage interest and property taxes. • Over many years, paying down the mortgage and property appreciation can signicantly increase your net worth, and owning a home can be a valuable asset to pass on to future generations. Buying a Home BenefitsEQUITY: Sure, home values uctuate, but on the whole, property values increase. That means when you live in a home you own, it becomes more valuable than when you bought it. Homeownership is one of the most reliable investments a person can make. STABILITY: If you choose a xed-rate mortgage loan, your monthly mortgage payment will remain the same… unless you choose to renance.PERSONALIZATION: The freedom to customize your home goes beyond the ability to paint a wall neon orange or use a heavy-duty anchor hook for that giant shadow box from your mom. You’ll know that investing in design and decor will provide long-term enjoyment. You might even gain extra home equity with some choice home updates!Rent or Buy?If both renting and buying didn’t have their upsides, we’d all be wasting our time here. But, wasting time we are not. Both options provide benets. In general:In summary, buying a home is typically a better nancial decision if you plan to live there for a long time because it allows you to spread out initial costs, build equity, benet from market appreciation, and enjoy the stability and personalization that homeownership offers.All that said, if you don’t plan to sit and simmer in one place for 10 or more years, renting might be nancially advantageous. And, you probably won’t have to pay when the AC breaks either.Is It Smarter To Rent or Buy a House?There’s no way around it. Housing is expensive these days. And deciding whether it’s smarter to rent or buy a house is a complicated decision. You’re probably wondering: “Which option is (at least a little) less expensive?”“Can I even qualify to buy my own place?”“How much down payment do I need to buy a house?” Well, the short answer is… it depends. The amount of time you plan to stay in a home should probably be the largest factor in your decision. Then, there’s the down payment, your credit score, and where you want to live. Read on for the facts, numbers, and some insider tips so you can decide whether to buy a home or keep renting.Rent?Buy?
Renting a Place BenefitsFLEXIBILITY: It’s easier to move without long-term commitments.LOWER UPFRONT COSTS: Renting usually requires a security deposit and the rst month’s rent. This tends to be a signicantly smaller amount than a down payment and closing costs for a home purchase.MAINTENANCE: When the plumbing goes awry or the dishwasher breaks, you can literally wash your hands of the problem while your landlord does the dirty work – or pays someone else to do it.NO PROPERTY TAXES: When you rent, you don’t pay property taxes or homeowner’s insurance.Time. The Great Decider.When it comes to making the decision between renting and buying, time will likely play the biggest role. Most experts will refer you to the concept of the breakeven horizon. Sounds pretty epic, right? The truth is, the breakeven horizon IS epic. It’s the time when a homeowner has reached the point where all of the investments they’ve made in their home (the down payment, closing fees, real estate agent commissions, repairs, etc.) are balanced by the equity the home has gained. And from there, the average homeowner makes money on the deal. In the early years of a mortgage, a large portion of your payments goes toward interest rather than principal, meaning you build equity slowly at rst. However, the longer you stay, the more you pay down the principal and build equity. Real estate generally appreciates over time, and staying longer increases the likelihood of beneting from this appreciation, potentially making a prot when you sell. Short-term market uctuations can affect home values, but staying longer mitigates the risk of having to sell during a downturn.So, when does the average homeowner reach their breakeven horizon? It depends on your down payment, interest rate, and some other factors, but recent estimates hover around 10 years in the Denver area. From a practical standpoint, staying in one place allows you to establish roots, build relationships, and become part of the community. Owning a home gives you the freedom to make improvements and customizations that suit your lifestyle, which can be more rewarding if you plan to stay long-term. For personal and family planning, staying in one home provides stability and consistency for children in terms of schooling and social connections. It also makes sense if you have a stable job and foresee staying with the same employer or within the same region.Long-term benefits include: • Cost efciency, as owning a home can be more cost-effective than renting over time. • Mortgage payments can be xed, while rents often increase. • Homeowners can also take advantage of tax deductions on mortgage interest and property taxes. • Over many years, paying down the mortgage and property appreciation can signicantly increase your net worth, and owning a home can be a valuable asset to pass on to future generations. Buying a Home BenefitsEQUITY: Sure, home values uctuate, but on the whole, property values increase. That means when you live in a home you own, it becomes more valuable than when you bought it. Homeownership is one of the most reliable investments a person can make. STABILITY: If you choose a xed-rate mortgage loan, your monthly mortgage payment will remain the same… unless you choose to renance.PERSONALIZATION: The freedom to customize your home goes beyond the ability to paint a wall neon orange or use a heavy-duty anchor hook for that giant shadow box from your mom. You’ll know that investing in design and decor will provide long-term enjoyment. You might even gain extra home equity with some choice home updates!Rent or Buy?If both renting and buying didn’t have their upsides, we’d all be wasting our time here. But, wasting time we are not. Both options provide benets. In general:In summary, buying a home is typically a better nancial decision if you plan to live there for a long time because it allows you to spread out initial costs, build equity, benet from market appreciation, and enjoy the stability and personalization that homeownership offers.All that said, if you don’t plan to sit and simmer in one place for 10 or more years, renting might be nancially advantageous. And, you probably won’t have to pay when the AC breaks either.Is It Smarter To Rent or Buy a House?There’s no way around it. Housing is expensive these days. And deciding whether it’s smarter to rent or buy a house is a complicated decision. You’re probably wondering: “Which option is (at least a little) less expensive?”“Can I even qualify to buy my own place?”“How much down payment do I need to buy a house?” Well, the short answer is… it depends. The amount of time you plan to stay in a home should probably be the largest factor in your decision. Then, there’s the down payment, your credit score, and where you want to live. Read on for the facts, numbers, and some insider tips so you can decide whether to buy a home or keep renting.Rent?Buy?
Denver MetroMarket ReportAUGUST 2024DETACHED HOMESAVG SALE PRICE+1.60% change 1 yr$794,685AVG DAYS IN MLS+27.27% change 1 yr28ATTACHEDAVG SALE PRICE-5.96% change 1 yr$456,439AVG DAYS IN MLS+40.00% change 1 yr35PERR.CO/MARKETREPORT© Content created by Corcoran Perry & Co. All rights reserved. Market data for residential & condo sales for calendar month as reported by DMAR. May not reect all sales. Average days on market is between when property is rst listed and when offer is accepted for sold listings only. Average sold price is for single family detached only and does not account for seller concessions and/or down payment assistance.This summer, stagnantly high interest rates have signicantly inuenced Denver’s real estate market. Here’s an in-depth look at the key trends shaping the housing landscape..ACTIVE LISTINGS:At the end of July, active listings increased by nearly 4% month-over-month and a signicant 68% year-over-year. This rise offers more choices for buyers and suggests a growing condence among sellers.NEW LISTINGS:New listings saw an 11% decline from June but were up by almost 8% compared to last year. This decline points to a typical seasonal slowdown, but the yearly increase suggests more homeowners are testing the market.CLOSED SALES:The number of closed sales dropped by 5% from June and decreased by nearly 5% compared to last July. This decline reects a more deliberate pace in the market, where buyers and sellers alike are taking their time to ensure they make the right moves in an environment of uctuating economic conditions.HOME PRICES:The average closed price dipped by 1% from June but rose by 2% year-over-year, while the median price remained relatively at month-over-month and increased by 2% from last year. These gures highlight a market that is stabilizing, with prices no longer experiencing the rapid escalations seen in previous years.DAYS ON MARKET (DOM):Homes spent 7% more time on the market compared to June and 30% more compared to last year. The median days on market saw an even more pronounced increase, up by 15% month-over-month and 67% year-over-year indicating that buyers are taking their time, evaluating their options, and driving harder bargains.CLOSE-PRICE-TO-LIST-PRICE RATIO:The ratio decreased by half a percent month-over-month and nearly 1% year-over-year, showing that buyers are successfully negotiating sales prices closer to list prices, leveraging the increased time properties are spending on the market.Assess Your Financial SituationStart by reviewing your credit score. Checking your credit report and score is crucial, as a higher credit score can qualify you for better mortgage rates. Next, focus on saving for a down payment. Aim to save as much as you can… at least 20% of the home’s purchase price if you’re set on avoiding private mortgage insurance (PMI) costs. Finally, create a budget to determine how much you can afford to spend on a house. A helpful way to think about this is to calculate what your monthly payment would be and then check that it ts into your monthly budget.Understand the CostsIn addition to the down payment, you need to budget for closing costs, which can be 2-5% of the purchase price. It’s essential to factor in these costs to avoid any nancial surprises. You’ll also want to consider your monthly expenses, including property taxes, homeowners insurance, maintenance, and utilities. Understanding these costs upfront will help you plan your nances more effectively and ensure you can afford your new home in the long run.Research and Choose a LocationTake the time to research different neighborhoods to nd one that ts your lifestyle and needs. Consider factors such as proximity to schools, work, public transportation, and amenities. Choosing the right location is essential for your long-term happiness and convenience. By thoroughly researching neighborhoods, you can ensure that you select an area that aligns with your preferences and daily routines.Hire a Real Estate AgentLook for an experienced real estate agent who specializes in helping rst-time buyers and is familiar with your desired area. A knowledgeable agent can provide valuable insights and guide you through the home-buying process. Don’t hesitate to ask questions and use your agent as a resource for understanding the buying process and negotiating offers. Their expertise can help you make informed decisions and nd the right home for you.Get Pre-Approved for a MortgageBegin by nding a mortgage professional you can trust. Get referrals from your real estate agent and your trusted circle. You can also take to the internet and browse reviews. Since this is such a big purchase, it’s worth comparing 2 or 3 home loan estimates to nd the right one for you. Then, you’ll want to get a mortgage pre-approval. This step is crucial as it helps you understand how much you can borrow and shows sellers that you are a serious buyer. A pre-approval letter can give you a competitive edge in a competitive housing market.Start House HuntingLet the fun begin! Your real estate agent will help you select homes that are in your budget and your desired areas. And remember to be exible. You might not nd a home with the exact cabinets you’ve been dreaming of, but that can come later. Focus on the number of rooms you need, the location that ts your lifestyle, and any other NEEDS you’ve identied. To Be (a Homeowner) or Not to Be (a Homeowner)?So, is it smarter to rent or buy a home? We know “it depends” might not be the clear-cut answer you were hoping for. But when is something so important ever that straight-forward? It’s a big decision that requires thought and some number crunching. So, connect with a homebuying team to see if you’re ready. A reliable real estate agent and mortgage professional can help you sift through the housing noise and compare some hard gures. And if you’re not ready to buy? No worries! Corcoran Perry & Co. has a great leasing team too.All the Other Home Purchase NumbersQualifying to buy a home can be a bit more challenging than qualifying to rent… but not as challenging as you might think. No, you don’t need to have a 20% down payment and you don’t need a 650 credit score either! You could pay as little as 3% down (although you’ll pay more in the long run) and have a credit score as low as 500, depending on the type of home loan you get. And there’s a bonus to homeownership! If you make your mortgage payment on time every month, you’ll be building your credit score AND your equity. Another benet of owning a home is that you’ll stay current with housing market value. If home prices go up, your equity probably will too. If you rent, you just pay more and more each year without getting a thing out of it.Ready to Buy a Home? Here’s How to Get Started.You already know how to rent a place. Go to a leasing ofce or contact a property owner, ll out a few forms, consent to a background check, pay your deposit, and you probably have keys in hand! Buying a home is a different story. It’s a big investment, which calls for thoughtful planning. So here’s a quick guide on how to prepare for home-buying:
Denver MetroMarket ReportAUGUST 2024DETACHED HOMESAVG SALE PRICE+1.60% change 1 yr$794,685AVG DAYS IN MLS+27.27% change 1 yr28ATTACHEDAVG SALE PRICE-5.96% change 1 yr$456,439AVG DAYS IN MLS+40.00% change 1 yr35PERR.CO/MARKETREPORT© Content created by Corcoran Perry & Co. All rights reserved. Market data for residential & condo sales for calendar month as reported by DMAR. May not reect all sales. Average days on market is between when property is rst listed and when offer is accepted for sold listings only. Average sold price is for single family detached only and does not account for seller concessions and/or down payment assistance.This summer, stagnantly high interest rates have signicantly inuenced Denver’s real estate market. Here’s an in-depth look at the key trends shaping the housing landscape..ACTIVE LISTINGS:At the end of July, active listings increased by nearly 4% month-over-month and a signicant 68% year-over-year. This rise offers more choices for buyers and suggests a growing condence among sellers.NEW LISTINGS:New listings saw an 11% decline from June but were up by almost 8% compared to last year. This decline points to a typical seasonal slowdown, but the yearly increase suggests more homeowners are testing the market.CLOSED SALES:The number of closed sales dropped by 5% from June and decreased by nearly 5% compared to last July. This decline reects a more deliberate pace in the market, where buyers and sellers alike are taking their time to ensure they make the right moves in an environment of uctuating economic conditions.HOME PRICES:The average closed price dipped by 1% from June but rose by 2% year-over-year, while the median price remained relatively at month-over-month and increased by 2% from last year. These gures highlight a market that is stabilizing, with prices no longer experiencing the rapid escalations seen in previous years.DAYS ON MARKET (DOM):Homes spent 7% more time on the market compared to June and 30% more compared to last year. The median days on market saw an even more pronounced increase, up by 15% month-over-month and 67% year-over-year indicating that buyers are taking their time, evaluating their options, and driving harder bargains.CLOSE-PRICE-TO-LIST-PRICE RATIO:The ratio decreased by half a percent month-over-month and nearly 1% year-over-year, showing that buyers are successfully negotiating sales prices closer to list prices, leveraging the increased time properties are spending on the market.Assess Your Financial SituationStart by reviewing your credit score. Checking your credit report and score is crucial, as a higher credit score can qualify you for better mortgage rates. Next, focus on saving for a down payment. Aim to save as much as you can… at least 20% of the home’s purchase price if you’re set on avoiding private mortgage insurance (PMI) costs. Finally, create a budget to determine how much you can afford to spend on a house. A helpful way to think about this is to calculate what your monthly payment would be and then check that it ts into your monthly budget.Understand the CostsIn addition to the down payment, you need to budget for closing costs, which can be 2-5% of the purchase price. It’s essential to factor in these costs to avoid any nancial surprises. You’ll also want to consider your monthly expenses, including property taxes, homeowners insurance, maintenance, and utilities. Understanding these costs upfront will help you plan your nances more effectively and ensure you can afford your new home in the long run.Research and Choose a LocationTake the time to research different neighborhoods to nd one that ts your lifestyle and needs. Consider factors such as proximity to schools, work, public transportation, and amenities. Choosing the right location is essential for your long-term happiness and convenience. By thoroughly researching neighborhoods, you can ensure that you select an area that aligns with your preferences and daily routines.Hire a Real Estate AgentLook for an experienced real estate agent who specializes in helping rst-time buyers and is familiar with your desired area. A knowledgeable agent can provide valuable insights and guide you through the home-buying process. Don’t hesitate to ask questions and use your agent as a resource for understanding the buying process and negotiating offers. Their expertise can help you make informed decisions and nd the right home for you.Get Pre-Approved for a MortgageBegin by nding a mortgage professional you can trust. Get referrals from your real estate agent and your trusted circle. You can also take to the internet and browse reviews. Since this is such a big purchase, it’s worth comparing 2 or 3 home loan estimates to nd the right one for you. Then, you’ll want to get a mortgage pre-approval. This step is crucial as it helps you understand how much you can borrow and shows sellers that you are a serious buyer. A pre-approval letter can give you a competitive edge in a competitive housing market.Start House HuntingLet the fun begin! Your real estate agent will help you select homes that are in your budget and your desired areas. And remember to be exible. You might not nd a home with the exact cabinets you’ve been dreaming of, but that can come later. Focus on the number of rooms you need, the location that ts your lifestyle, and any other NEEDS you’ve identied. To Be (a Homeowner) or Not to Be (a Homeowner)?So, is it smarter to rent or buy a home? We know “it depends” might not be the clear-cut answer you were hoping for. But when is something so important ever that straight-forward? It’s a big decision that requires thought and some number crunching. So, connect with a homebuying team to see if you’re ready. A reliable real estate agent and mortgage professional can help you sift through the housing noise and compare some hard gures. And if you’re not ready to buy? No worries! Corcoran Perry & Co. has a great leasing team too.All the Other Home Purchase NumbersQualifying to buy a home can be a bit more challenging than qualifying to rent… but not as challenging as you might think. No, you don’t need to have a 20% down payment and you don’t need a 650 credit score either! You could pay as little as 3% down (although you’ll pay more in the long run) and have a credit score as low as 500, depending on the type of home loan you get. And there’s a bonus to homeownership! If you make your mortgage payment on time every month, you’ll be building your credit score AND your equity. Another benet of owning a home is that you’ll stay current with housing market value. If home prices go up, your equity probably will too. If you rent, you just pay more and more each year without getting a thing out of it.Ready to Buy a Home? Here’s How to Get Started.You already know how to rent a place. Go to a leasing ofce or contact a property owner, ll out a few forms, consent to a background check, pay your deposit, and you probably have keys in hand! Buying a home is a different story. It’s a big investment, which calls for thoughtful planning. So here’s a quick guide on how to prepare for home-buying:
Featured Properties1350 Birch Street | Hale$1,795,000 | 5BD | 5BA | 4,319 SF5230 Bow Mar Drive | Bow Mar$3,850,000 | 4BD | 7BA | 7,648 SF2990 E 17th Avenue, #1605 | City Park$1,100,000 | 2BD | 2BA | 1,505 SF3241 Fulton Street | Central Park$959,949 | 4BD | 4BA | 2,983 SF
Featured Properties1350 Birch Street | Hale$1,795,000 | 5BD | 5BA | 4,319 SF5230 Bow Mar Drive | Bow Mar$3,850,000 | 4BD | 7BA | 7,648 SF2990 E 17th Avenue, #1605 | City Park$1,100,000 | 2BD | 2BA | 1,505 SF3241 Fulton Street | Central Park$959,949 | 4BD | 4BA | 2,983 SF
As we transition into the latter half of the year, Denver Metro’s real estate market may be experiencing a signicant turning point. The data from early August presents some compelling insights:The long-anticipated dip in interest rates has nally materialized, resulting in a modest yet noticeable 1% increase in mortgage applications. This shift signals that buyers are not only cautiously optimistic but also eager to take advantage of the favorable conditions as rates potentially continue to decline. If this trend continues, we can anticipate a surge in market activity, with homebuyers harnessing their increased purchasing power to buy their rst home, move up, or downsize.On the ip side, sellers are beginning to look forward to a potentially stronger buyer pool if rates continue to decrease. In the meantime, they are still enjoying the benets of a steady 2% average increase in their home’s value year over year. One thing is clear: both buyers and sellers are ready to make strategic moves, provided interest rates keep trending downward.Navigating this evolving real estate landscape is something I’m truly passionate about. If you’re curious about your home’s current value, considering a move to a new neighborhood, or simply interested in discussing the latest market trends, let’s connect!GET YOUR PERSONALIZED HOME REPORT! Maximize the wealth on one of the largest assets you own: Your Home.Homebot displays timely money saving actions and precise wealth-building suggestions. You’ll know how much you can save over time, without doing any research! You’ll receive a personalized web page that constantly monitors your long-term home wealth.Kim SchantzBROKER ASSOCIATE, REALTOR®925.548.1717kschantz@corcoranperry.comperr.co/kims