And the answer, drum roll, is: Yes.
This is The Market To Buy A House Or Purchase A Condo
At the end of the day, a number of factors will come into play in your decision making process. Do you want to be in the city center where condos are prevalent or out in the ‘burbs where the same money is apt to afford you a house? Do you need lots of space for kids and home offices whatnot or is it just you?
How The Luxury Condo Market Stacks Up To Similarly Priced Homes
A recent article, shared with me by Jordan Chomko, mortgage broker, touches on this. Looking at luxury Denver condominiums, those priced over $1,000,000, we find there is nearly six months inventory in the Denver Metro marketplace. Conversely, for single family homes in the same price point, there is less than three months inventory.
Why? Right now as I jot this article, most likely Covid-19 is playing into this. Home shoppers are seeking more space at home. Houses are doubling or tripling as school, gym, playground. With Coronavirus forcing “stay at home” orders, folks need a safe place to settle in.
In Denver, the last month was one of the strongest sales months on record. Over three hundred and fifty million dollar plus homes sold for the month. That’s a 53% increase year over year. Here’s a different way to look at that statistic. About seven years ago, when I was blogging every week on home sales, I would point out if a million dollar plus sale even took place for the month. And now, in one month we had a massive jump.
So I Should Buy A House
Home shoppers can find values by bucking trends. Sure, expensive houses are selling at the moment. But do you believe Covid-19 will be here forever? Or do you feel therapeutics and vaccines are around the bend? Or are you perhaps young and in a financial position to buy your dream condo – perhaps a loft overlooking the sports stadiums in downtown Denver.
With 5.7 months of inventory, Denver luxury condo buyers might discover it is more a Buyer’s market. What do I mean by that? Low demand, lots of options. In a buyer’s market, you might get a much better value. The seller may have already done the heavy lifting, so to speak, by dropping the price to spur some action. Condo buyers in this price point can have the Seller pay the closing costs and make the concessions
So I Should Purchase A Condo!
While there is far less inventory of homes out there, it may still be that a house is the best option. If you have a big family, or if you are starting one, a single family residence makes sense. If pets, especially dogs that need outdoor space are a concern, a house is a good choice.
And of course, this comparison is just looking at two equally expensive options. Denver metro homebuyers should be ready for median home prices around $600,000.
Get Off The Fence
You – yes you! You should get off the fence. Here is what we say about the housing market. Inventory is a challenge. Or put another way, there are fewer houses to go around and a lot of buyers.
Home mortgage rates are low. If you are waiting for rates to go even lower, its unlikely you’ll be able to time the market. Three percent for a thirty year note has been unheard of most of my career.
Denver remains a very popular destination. We have jobs, we have an amazing quality of life. We have more people relocating to be here than moving away.
There is every likelihood home values will be higher tomorrow than yesterday. If you are thinking about making a move, how is the moment to do so. Oh, and don’t forget Covid-19. There is every possibility that Governor Pollis will institute new closures – Stay Safer At Home stuff. If that happens, the real estate community will be back to selling houses sight unseen.
Bottom Line on Whether To Buy A House or Purchase A Condo In This Market
A resounding yes. This is what home buyers seek: low rates/payments, increasing home values, strong markets. I’m Realtor Bob Gordon and I approve this message.