Should You Buy a House in Denver, Colorado in 2021?

May 30, 2017
Last updated:
February 26, 2021
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With steadily rising home prices and relatively low mortgage rates, many Denver residents are now asking the question: Should I buy a house in Denver, Colorado in 2021? This article will help you get closer to making that decision.

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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 2021. Based on the current temperature of the market, price predictions, and low interest rates, 2021 absolutely may be the perfect time to buy.

According to mortgage-buying corporation Freddie Mac, the average rate for a 30-year home loan sits at 2.73%. The same time last year, rates were at 3.47%. That’s quite a difference that can help save borrowers tens of thousands of dollars on their home loans.

Home prices in Denver, meanwhile, have increased quickly over the past 12 months. This means that those who postpone their home purchases until later in 2021, 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 2021.

Should I Buy a House in Denver in 2021?

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 2021.

1. Mortgage rates are hovering near historic lows.

Mortgage rates are lower now (February 2021) than they were at the start of the year, as already mentioned. The average rate for a 30-year fixed mortgage fell to 2.73% during the week of February 10, 2020. We haven’t seen rates this low since early 2018.

Looking forward, analysts expect rates to remain under the 3.0% mark throughout 2021. So, from a mortgage rate perspective, now could be a good time to buy a house in Denver, Colorado.

Live Denver Mortgage Rates

2. Denver home prices have increased quickly.

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, according to the real estate information company Zillow, the median house value in Denver rose by 6.8% over the last 12 months alone (as of February 2021). And the price is actually about double today than what it was in 2011.

Home prices are expected to continue along the same path in 2021.

As for the whole rent-versus-buy question, consider this. The median rent in Denver is $1,631, according to RentCafe. If you were to buy a house in Denver at the current median price of $494,856 with a 20% down payment at today’s mortgage rate for a 30-year fixed-rate mortgage, your mortgage payments would be $1,608 per month. You could actually be paying less by owning as opposed to renting.

3. The Denver market is warm.

As already mentioned, the housing market in Denver is warm right now. Prices in Denver have increased at a respectable rate, and may increase at roughly the same pace throughout the remainder of 2021.

Denver is notorious for having home price increases that have steadily outpaced wage increases, and 2021 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, and while historically low interest rates continue before they start on an upward trend once again.

First-time buyers who are wondering if they should buy a house in Denver in 2021 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.

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Do You Need a Mortgage to Finance a Home Purchase in Denver?

Are you thinking of buying in Denver in 2021? 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. Please contact us to get started.

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