Posted on September 14th by Ryan Penn, Denver Realtor:

Many people we talk to about purchasing a home have been waiting out the market to see if home prices and interest rates are going to drop any further. Does this sound like you? Then keep reading.

It’s hard to fault anyone for being cautious right now with the current state of the economy. Remember, every Real Estate Market is different and Denver’s has been one of the strongest nationally over the last 6 months. Denver is leading the charge in the national Real Estate recovery. Check out all of these positive indicators for written about Denver over the last 6 months:

Forbes Magazine Rates Denver Number One City to Buy a Home

Barbara Corcoran Says Denver is #1 Real Estate Market on the Way to Recovery on the Today Show

5280 Magazine Names 8 Denver Neighborhoods Where Home Values are Rising in the 2009 Real Estate Issue

Urban Land Institute Named Denver one of its Top 10 Real Estate Markets in its Emerging Trends in Real Estate 2009 Report

When it boils down to it, there are 3 very large reasons to make your home purchase right now. Interest rates are at historic lows, home prices hit the bottom 6 months ago, and the government is giving away $8,000 to first time home buyers.

Interest Rates:

Interest rates have been bouncing between 5 and 6 percent over the last few months and are currently in the low to mid 5’s for a 30 year fixed rate mortgage. Many experts are predicting a rise in inflation and consequently a rise in interest rates as a result of the government’s stimulus spending. This chart demonstrates just how historically low interest rates are.

Take a look at where rates were in the early eighties – the last time inflation skyrocketed. Then take a look at the last time interest rates were this low. Yep, that’s right, 1967! We hope these charts provide food for thought for anyone wondering if now is a good time to get off the fence regarding a home purchase.

Bottom Line: There’s no guarantee what will happen to interest rates in the future. Smart home buyer’s are locking down rates of 5% for the next 30 years, and so should you.

Home Prices :

Home Values under $400k are back on the upswing. It’s all about supply and demand in Real Estate and with all of the home buyer’s taking advantage of low interest rates and the tax credit, the demand for homes has steadily increased. The market under $200k in Denver is on fire, with homes and condos going under contract within days of going to market. Money has loosened up and people that couldn’t get a home loan a year ago are now able to qualify for a purchase, resulting in more active buyers. We hit bottom 6 months ago, and home values are back on the rise. Just look at these charts from Trulia showing both sales price and number of sales, both are now trending upward!

History tells us that it’s best to buy at the bottom of the market, well, that happened in January so make your purchase now!

Home sales have steadily increased since Jan 2009, when the Denver Real Estate Market bottomed out.

Bottom Line: The Denver Real Estate Market hit bottom in January. With interest rates in the low 5′s and home prices still reasonable you can’t afford to wait any longer to make your home purchase.

$8,000 Tax Credit:

If you want to take advantage of the $8,000 Government tax credit you are running out of time. The deadline of December 1st, 2009 at midnight is coming faster than you think, especially once you realize that you have to be closed on the property by that deadline! As of today (9/14) you have 75 days to take advantage of the tax credit. Standard Real Estate closings are taking up to 45 days right now instead of the usual 30 days due to new appraisal guidelines. 30 day closings can be pushed with certain lenders, but you can’t rely on it. If you stated your search today you would have around 30 days to find a home, and then another 45 days to close the transaction. Don’t get left behind!

Bottom line: The deadline for the tax credit is Dec 1st, 2009 at midnight, a little over 90 days away. Closings are taking 45 days now for a standard closing, so there is no longer any time to stall. You need to start the process now so you won’t feel rushed on your purchase.

Conclusion:

If you have been on the fence regarding a new home, loft, or condo purchase then it is time to start moving. There are still some incredible deals to be had both with foreclosures and standard home purchases. Interest rates may never be this low again and the government will give you $8,000 for free. The Cash for Clunkers program ran out of money and there is no telling if the current Real Estate tax credit will be extended past the current deadline of 12/1/2009 at midnight.

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It might be time to start scheduling some showings and looking at some properties. When you are looking at property details on 360dwellings.com, simply click “Contact Agent” to schedule a showing. You can also schedule a free Home Purchase consultation by calling (303) 532-4742.