Why You Shouldn’t Wait to Buy
Here are five reasons you shouldn’t wait to buy a home in Fort Collins.
We’ve recently heard plenty of people saying that since the real estate market is so nutty, they’re waiting for it to crash before they buy a house. Here are five points to consider if you’re thinking about waiting:
1 . In a recession, Fort Collins prices level off. We looked at the 50-year history of the Fort Collins real estate market and saw that in every recession the U.S. was in, Fort Collins real estate prices just leveled off. Even during the worst of the recession, we never saw prices nosedive. If you’re waiting for some sort of crash in our market, it’s unlikely to happen here.
2. You likely have equity. If you own your home, you’re probably sitting on great equity. Your home has appreciated, and your ratio to buy is very strong. You can sell your home, buy a move-up house, and likely keep your payment around the same amount because you’ll be pulling out equity and putting more cash down on the next home. If you wait for prices to decrease, thinking your next house will be cheaper, you also won’t get as much for your current house, so your buying power ratio won’t be as strong.
“Even during the worst of the recession, we never saw prices nosedive.”
3. Interest rates are super low. At this point, rates can only rise, so it would be better to jump into the market now while you know the rates are as low as they’ll probably ever be.
4. You’re paying more to rent. If you’re renting right now and thinking you’ll wait to buy until there are fewer bidding wars and the market is less insane, do the math. We did the math on the average rental in Fort Collins: If you rented for just two years, you are paying around $40,000 to $50,000 in rent. That money could go a long way toward a down payment and fixing up your own house to create sweat equity. Keep your money in your pocket, not your landlord’s.
5. It makes more sense to buy than rent. If you’re going to stay in any town for more than two years, it makes more sense to buy because of the money you’ll save. Owning a home is the best wealth-building tool you have in our county.
Give us a call or send an email if you have any questions or want us to run your numbers, we do it for people all the time. We can help you assess the best time to buy. We look forward to seeing you soon.
