The Denver Metro area has long been ranked one of the top places to live in the United States of America. Which is understandable given the beautiful scenery, excellent outdoor recreational activities, steady job market, moderate climate and impressive school districts.
There’s no doubt that we plan to stay in Colorado for the next several years. So that makes me wonder…
Should we continue to rent? Or should we buy a home in Denver?
Buying vs. Renting in 2017
Considering the benefits of living in the Denver Metro area, my husband and I have been on the hunt for our first home for the past year. We figured if we are already paying close to $1500 a month to rent a one-bedroom apartment in Denver, wouldn’t we be better off buying a condo instead?
A 30 year fixed rate mortgage with 20 percent down and an interest rate of 4.5 percent would give us monthly payments of about $847. With that logic, we could buy a condominium or townhome with more space and pay less than we currently do each month. Sounds like a dream, doesn’t it?
Unfortunately, we are discovering that first time home buyers are having trouble getting into the market right now because of the small selection and inflated prices.
In December 2016, the average sale price for a single-family detached home was $434,421, while attached condominiums were averaging $308,212. Today, it is rare to find a home priced under $300,000 in Denver and it is unheard of to find a 1-bedroom 1-bathroom home for under $250,000. Chances are if you do find a decent option at a reasonable price, someone will have already put in an all cash offer.
This goes for homes of all price points. Even the $1 million and $2 million dollar homes are entering bidding wars, something that was unheard of in Denver in past years.
The good news is it looks as if Denver apartment prices will decrease in 2017. There has already been a 6.7 percent drop in one-bedroom apartment rents compared to the year prior.
Currently, Denver is considered the perfect rental market. There are many apartment buildings popping up across the state accommodating the high amount of millennials moving to Colorado for well paying jobs.
The large amount of apartment complexes help keep the prices low and competitive, which is music to renters ears.
With all things considered, we will continue to rent in Colorado and we will see what 2018 holds.
Take a look at what $250,000 can get you across America