Even as the holidays are quickly approaching, this is the time of year when future buyers and renters begin thinking about where they will live in the following year. Should I renew my lease? Is this the year to buy a home?
A few interesting facts for those facing these questions:
- The average “millennial” will spend approximately $93,000 in rent before they are 30 years old!
- In a recent Pew research Study, 72% of renters said they would like to buy a house at some point.
- Roughly eight-in-ten adults (81%) agree that “buying a home is the best long-term investment in the U.S.”
Considering these statistics, it’s interesting that currently more U.S. households are headed by renters than at any point since at least 1965.
So why the wait? Why are more adults renting?
Homes typically increase in value, build equity and provide a nest egg for the future. Your costs are predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. The interest and property tax portion of your mortgage payment is often a tax deduction (depending on your standard deduction vs. mortgage interest paid).
Another recent study by the New York Federal Reserve Bank revealed that renters’ home buying intentions are particularly sensitive to down payment requirements. Many renters and home buyers alike think that it’s a requirement to have a down payment of 20%. While it’s true that a 20%+ down payment helps a buyer avoid mortgage insurance, there are many competitive loan programs with less than 20% offered. A quick call to one of our trusted 8z mortgage lenders can help eliminate this concern and guide you towards a purchase plan of action.
Want another interesting fact on home ownership that may sway your decision to buy vs rent? Look at the history of house values in Colorado (statewide):
Year Average Home Price Annual increase over 20 yrs
1980 $126,980 5.5% average increase/yr (109% increase over 20 years)
2000 $166,600 1.5% average increase/yr (31% over 20 yrs)
2018 $351,600 6.2% average increase/yr (111% increase over the past 18 years)
Suze Orman once said:
“Owning a home is a keystone of wealth – both financial affluence and emotional security.” I agree.
If you’re reading this, you may already own a home. If you know of a soon-to-be-buyer or someone renting, please feel free to forward this email and have them call or write me for more information. It’s never too early to start making plans.
A Refreshing Look at the Question “What is my House Worth?”
Let’s take a look at some of the stats for our area to get a better idea of what is going on in the local housing market!
In El Paso County for September 2018, the average sales price* was:
- $301,703 for Single Family Homes (up 9.7% from 1 year ago)
- $215,000 for Condos/Townhomes (up 10.3% from 1 year ago)
I have access to detailed stats across Colorado and can help you find out the worth of your property any time. I can also help you determine what your home is worth even if it’s in a different area. As always, I am here for you. If it’s time for you to buy or sell, let’s talk.
*Median sales price based on a six-month moving average