The Boulder real estate market is tearing it up and now is the time to buy your new home. Here are five reasons why now is the time to buy.
Interest Rates are climbing
Rates were low in 2012, hitting all time-lows in the three percent range, but since that time, rates have been climbing. Recently, to the surprise of Wall Street, the Fed minutes reflected a change in strategy, that the Federal Reserve might not continue to purchase mortgages. It has been this strategy which was keeping rates low as the economy showed life and the stock market began breaking 14,000.
Low Rates are available for buyers who act quickly
Supply is Shrinking
A number of factors are contributing to this, but the simple bottom line is there are fewer homes for sale at the same moment demand is ratcheting up. In the Boulder market, investors are competing for houses that buyers want. With the rental market doing incredibly well, more investors are looking to acquire homes in Boulder – the same homes first time buyers are competing for.
Rents are Skyrockting
From 2008 to 2012, new construction of rental property shrunk dramatically while consumer demand built. A large portion of the population that was a home buyer prior to the 2008 recession is now competing for the rentals available in the market. Boulder is recovering nicely along with Colorado and people are relocating to the area.
Rents are up big time in Boulder.
Price increases are coming to Boulder
With limited supply, strong demand and a rebounding economy, expect to see values climb in Boulder Valley. Watching articles in the newspaper and online, multiple sources such as Core Logic, FHFA, LPS and the Case Shiller index are predicting gains for real estate in 2013.
Buy Low, Sell High
This is a great moment to take advantage of an old adage. Don’t wait for prices to make a run. Now is an ideal time to take advantage of all the great things in our market – a recovering economy, low interest rates, still low home prices. Now is the time to buy your new home.
I’m around, give me a call to discuss your home buying needs today. – BOB