With first-time homebuyers out in force, along with investors, the median price for a single-family home rose 15% in February over the same month in 2008, to $220,750 last month from $192,000 a year ago.  Prices aren’t anywhere near the zenith of the housing boom – they are down 30 percent from the peak in May 2006 – but prices have been steadily increasing from month to month, climbing almost 4 percent off the bottom reached in May, 2008.  In addition, the Denver area bucked the nationwide slide in pending home sales, rising 21.9 percent to 3,690 in January compared with 3,028 during the prior month.

Although consumers were surprisingly quiet in the first three weeks of the year, activity increased greatly the last week of January, so the year has started much better than last year.  Many experts are bullish about the Denver market, and multiple offers on properties are being seen again.  Now that spring is here, the market should gain steam as buyers scramble to take advantage of the federal tax credit.  And, remember, the First-Time Home Buyer Tax credit of up to $8,000 and current homeowners credit of $6,500, expires April 30, 2010.

Right now is a great time for first-time buyers who don’t face the sale of a current home, with new buyers looking at good interest rates as well as great home prices and inventory.  It is, however, one of the biggest financial and lifestyle decisions most of us will ever make, so some self-assessment helps to decide when to buy.

You can find out if you are ready to buy a home by asking yourself some questions.  Do you have a steady source of income (usually a job)?  Do you have a good record of paying bills?  Do you have few outstanding long-term debts, like car payments?  Do you have money saved for a down payment?  Do you have the ability to pay a mortgage every month, plus additional costs?  If you can answer yes to these questions, you’re likely ready to buy a home. 

Start by thinking about how much you can afford in a monthly mortgage payment?  How much space do you need?  What areas of town do you like?  After you answer these questions, give the Arnie Stein team a call.  We can help you narrow your choices, determine your price range, and show you homes that meet your targets.  We listen well, understand your needs, have the resources and contacts to help you in your search and are experts in the area.  We can provide all the knowledge and services you need!