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With steadily rising home prices, many Denver residents are now asking the question: Should I buy a house in Denver, Colorado in 2024? This article will help you get closer to making that decision.
Denver is a desirable city to live in, and the 620,000 people who live here can attest to that. But if you had a home purchase on your mind recently, you may have wondered if you should finally make that purchase in Denver in 2024. Based on the current temperature of the market, price predictions, and high interest rates, is 2024 the right time to buy?
According to mortgage-buying corporation Freddie Mac, the average rate for a 30-year home loan sits at 7.17%. That’s quite a bit higher compared to where rates were the same time last year.
Home prices in Denver have also increased over the past 12 months. This means that those who postpone their home purchases until later in 2024 might encounter higher housing costs. So one could argue that now is a great time to buy a house in Denver, as we continue to head further into 2024.
Should you buy a home in Denver this year? There is no simple “yes” or “no” answer to this question. It’s the kind of question that must be considered on an individual basis, due to the many variables involved.
But for many would-be buyers, current conditions in Denver are ideal for buying a home. Here are some recent real estate market and mortgage trends to help you decide if you should buy a home in 2024.
Mortgage rates are higher now (May 2024) than they were at the start of last year, as already mentioned. The average rate for a 30-year fixed mortgage sits at 7.17% during the week of April 30, 2024.
Looking forward, analysts with the Mortgage Bankers Association (MBA) expect rates to dip over the next few months, though it remains to be seen exactly what will happen. Not long ago, the MBA predicted that the year 2024 would end off with a rate at 6.1%. But we haven’t really seen rates budge much since that predication was made.
The Denver real estate market generated a lot of headlines over the last couple of years, mainly because of rapidly rising home prices. That said, home price increases were very modest over the past 12 months. According to the real estate information company Zillow, the median house value in Denver inched up by only 0.4% over the last 12 months alone (as of May 2024).
Home prices are expected to continue rising throughout the remainder of 2024.
As for the whole rent-versus-buy question, consider this. The median rent in Denver for a 3-bedroom apartment is $3,207 according to Zumper.com. If you were to buy a house in Denver at the current median price of $575,188 with a 20% down payment at today’s mortgage rate for a 30-year fixed-rate mortgage, your mortgage payments would be $3,092 per month. There’s only a relatively small difference in mortgage payments compared to rent, and the equity growth you could see over the coming years could make buying well worth it.
As already mentioned, the housing market in Denver is relatively healthy right now. Prices in Denver have increased at a modest rate, and are expected to increase at a healthy pace throughout the remainder of 2024.
Denver is notorious for having home price increases that have steadily outpaced wage increases, and 2024 seems to be no different. Now may be the ideal time to get into the market in order to get in before prices continue to soar.
First-time buyers who are wondering if they should buy a house in Denver in 2024 should pay close attention to this trend. Houses in the metro area will likely be more expensive next year than they are now. Here’s more advice for first-time buyers.
Are you thinking of buying in Denver in 2024? Knowing how much you might pay each month will help you determine if now is the best time to buy. At Sammamish Mortgage, we can give you a personalized mortgage rate quote, along with a breakdown of your estimated monthly payments. We service all of WA, CO, ID, and OR since 1992, and have a number of mortgage programs to offer, including our Diamond Homebuyer Program. Please contact us to get started.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.