In the frenzy of the current market, sometimes it’s best to sit out for a little while. If you aren’t sure you want to live in Colorado for the next few years, or you aren’t financially stable, or your job isn’t feeling secure at the moment, adding a mortgage is perhaps not a welcomed stressor! Sit it out for a bit until you ARE emotionally and financially ready, even if that means paying a bit more for a home in the future.
The flip side of that, however, is feeling secure enough to jump into the market but being held back by your fear about the competitiveness and pace of the housing market in Denver. In this case, you should really take a serious look at the cost of waiting to buy a home. The Denver market has been one of the hottest in the country for over a decade. Prices increase year over year, with no indication today of changing course. In our market, sitting it out (even for only one year) due to fear or lack of confidence can have a real and long-lasting effect on your pocketbook.
I put together this graphic to illustrate the cost of waiting with real numbers, actual prices and current interest rates. The question to be considered is really: “is the price of fear worth $55,000?”