Denver Realtor

Every Home Deserves a KILTED Closing

  • Buy
    • Search for Homes
    • Mortgage Rates and Mortgage Payment Calculator
    • Relocation
    • Renting vs. Buying a Home
    • Rent-To-Own
    • My Listings
    • Resources for Buyers
  • Sell
    • Find Your Home’s Value
    • Resources for Sellers
    • Divorce and Selling Your House
  • Invest
  • Communities
    • Denver Neighborhoods
    • Centennial Homes and Community
    • Lakewood Homes and Community
    • Littleton Homes and Community
  • Blog
    • National and Local Real Estate Housing Market
    • Denver Housing Market
    • Buying a Home
    • Selling a Home
    • Financing a Home
    • Real Estate Investing
    • Renting
    • Homeownership
  • About
    • Why Choose Scott
    • Client Testimonials
    • Kilted Closings (photos)
    • eXp Realty Colorado
  • Contact
    • Join eXp Realty
You are here: Home / Real Estate / Is Buying a Home Today a Good Financial Move?

Is Buying a Home Today a Good Financial Move?

November 24, 2020

Is Buying a Home Today a Good Financial Move?

There’s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of “home.” This quest for a place better equipped to fulfill our needs, along with record-low mortgage rates, has skyrocketed the demand for home purchases.

This increase in demand, on top of the severe shortage of homes for sale, has also caused more bidding wars and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.

The truth of the matter is, even though homes have appreciated by a whopping 6.7% over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.

Let’s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100:Is Buying a Home Today a Good Financial Move? Compared to this time last year, you’ll actually save $87 dollars a month by purchasing that home today, which equates to over one thousand dollars a year.

But isn’t the economy still in a recession?

Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently explained:

“When volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.”

That thought is substantiated by the fact that homeowners have 40 times the net worth of renters. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation, recently said:

“Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don’t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.”

Bottom Line

With home prices still increasing and mortgage rates perhaps poised to begin rising as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.

Start Your Home Search

home buyers guide
FREE Buyers Guide
Starting the home buying process is easy and involves a few simple steps: Download my Home Buyers Guide to learn general information. Search for homes currently on the market to get a feel for the types of homes, locations, and price points available. And of course, please call me, or send me an email / text, to discuss any thoughts about your next home, the buying process, and the most important next step.

Get My List of Hot Properties »

When It Is Time To Sell Your Home

guide for home sellers
FREE Sellers Guide
Find out how much your home is worth and download my free guide for home sellers for helpful information. It is important to choose a REALTOR® who can develop an effective marketing strategy for your property, negotiate well on your behalf, and has the knowledge to provide an accurate market comparison so you can determine the right asking price. The market is more balanced now and your asking price is an important component of your selling strategy. Contact me today to learn how your home stacks up against the competition and how we can position your property to sell quickly and for a good price.

Get A Quick Home Valuation »

My Denver real estate blog has loads of useful information for home buyers trying to figure out what they want to do…
Real Estate Housing Market | Buying a Home | Selling a Home | Financing a Home | Renting | Homeownership | Investing

SHARE THIS:

  • Email
  • Print
  • Facebook
  • Twitter
  • LinkedIn
  • More
  • Reddit
  • Tumblr
  • Pinterest
  • Pocket
  • Telegram
  • WhatsApp
  • Skype

Topic: Real Estate

SUBSCRIBE: Receive a Weekly Digest of This Blog in Your Email Inbox

/ ( mm / dd )
(No SPAM. Just good content. Safe unsubscribe anytime.)

DENVER REAL ESTATE & HOUSING BLOG

scott rodgers realtor blogHi, I'm Scott Rodgers, a native of Denver and a professional Realtor serving the metro Denver metro area. In short, I help people buy and sell homes, and have built a bit of a reputation wearing a kilt to my clients' closings.

Follow this daily blog on the Denver housing market and real estate related topics for highly relevant information for home buyers and sellers.

And should you or someone you know be in the market to buy or sell a home, please reach out to me to discuss what you are looking to do. I adapt to all my clients' needs and strive to provide you with The Peak Results.

Find Your Next Home

Nextdoor.com Favorite Agent Cory-Merrill Denver

2020 Rising Star Real Estate Agent Scott Rodgers

Denver Real Estate Blog

  • Financial Fundamentals for Homebuyers [INFOGRAPHIC] January 22, 2021
  • What Experts Are Saying about the 2021 Job Market January 21, 2021
  • Owning a Home Is Still More Affordable Than Renting One January 20, 2021
  • Should I Wait for Lower Mortgage Interest Rates? January 19, 2021
  • How to Make the Dream of Homeownership a Reality This Year January 18, 2021
  • Things to Avoid after Applying for a Mortgage [INFOGRAPHIC] January 15, 2021
  • Why Right Now May Be the Time to Sell Your House January 14, 2021
  • Will Forbearance Plans Lead to a Tsunami of Foreclosures? January 13, 2021
  • 4 Reasons People Are Buying Homes in 2021 January 12, 2021

Search Homes on Your Mobile

Visit www.ThePeak.com from your mobile phone and click the button below to search the MLS for homes with the best mobile user experience: fast, accurate, and easy to use.
Download App
Or, text 'scottrodgers' to 720-726-1625 and I'll send you the link to download the mobile app.

Giving Back

Join my team on Kiva.org and help alleviate poverty by making loans of $25. We have made over 200 loans for a total of over $5,000 loaned to small business upstarts in over 50 countries.

Scott Rodgers

Broker Associate, REALTOR®
The Peak Results at eXp Realty
Serving greater Denver, Colorado
303-242-8831 (m)

  • Email
  • Facebook
  • LinkedIn
  • StumbleUpon
  • Twitter
  • YouTube

Search

the peak results with scott rodgers - exp realty denver

Why Choose Scott Rodgers as your Realtor »     Recommend Scott on NextDoor »

Copyright© 2021 · EXP Realty - THE PEAK RESULTS with Scott Rodgers · Denver Real Estate Agent · Denver Housing Market · Privacy Policy · Terms of Service

Marketing efforts are not intended to solicit properties listed under written agreement with licensed real estate brokers.
Website content is for informational purposes only. For professional advice or service, engage a licensed real estate broker, loan originator, attorney, or CPA under written contract.

Go to mobile version
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.