Put a finger down if you lurk on Zillow religiously. Put a finger down if you have a bunch of properties saved. Put a finger down if you haven’t taken any action on those saved properties because you’re waiting for interest rates to drop.
Congratulations. If you put three fingers down, you need to read this blog post. Because as much as I also hate the idea of paying a high interest rate, I especially hate the idea of you losing out on your dream property because you were waiting for the Western Colorado real estate market to slow down…
Western Colorado Real Estate is Appreciating at an Astronomical Rate
Let’s start with what we know about Western Colorado real estate. Historical data can help us understand how the market has appreciated and make informed predictions about how it will continue to do so.
While the Western Colorado real estate market ebbs and flows from one year to the next, prices ultimately appreciate over time. In Delta County, home prices have increased 138.71% since 2000. In Montrose County, that number is 175.94%. However, home prices in both counties are actually down a percentage point or so year-over-year.
So, what do those numbers mean? They mean that real estate investing is a long-term game. You could sit there for six months and wait for home prices to potentially drop by 1%. But, thirty years from now, that 1% change is going to be pennies.
The biggest mistake a prospective buyer can make is trying to wait for the market to change, especially in something hot like the Western Colorado real estate market. Unless you’re willing to wait thirty years, the prices you’re seeing today are barely going to change in a year, but they’re going to change drastically throughout the time you own the property.
The Population on the Western Slope is Projected to Explode
Now, you’ve seen the data. Let’s move on to predictions.
As long as the Western Slope continues growing, the Western Colorado real estate market will remain relatively stable, even if the national real estate market dips.
Luckily for sellers, and hopefully as motivation for buyers, the Western Slope is not only projected to grow but rather explode. According to the State Demographer’s Office, in 2015, the total population on the Western Slope was 563,766. By 2050, it’s projected to increase by 67.2% to 942,463. That’s a lot of people going after a finite amount of homes and land. Competition drives up real estate prices.
You Can Always Refinance When Interest Rates Drop
Finally, the opinions – hopefully justified by the data above. High interest rates shouldn’t deter you from buying your dream property in Western Colorado.
There are several options for circumventing high interest rates. Robert Gash has a great blog post that goes into further detail about these options, but here’s a quick synopsis:
- Buying Mortgage Points: Paying your lender fees upfront to buy down your interest rate.
- Refinancing Your Mortgage: Trading your old mortgage for a fresh one with a new principal and interest rate.
- Using an Adjustable-Rate Mortgage: Opting for an ARM, which offers lower interest rates for a period and adjusts afterward based on the market.
Start Searching Now Before Your Dream Home Gets Swiped Off the Market
What if the Western Colorado real estate market doesn’t slow down? What if you wait for interest rates to drop and home prices rise so much that you get priced out of your dream one? What if you buy now, secure your dream property, and refinance once interest rates get lower? That’s what I think you should do. But I’m just a real estate agent, surrounded daily by the best real estate agents in Western Colorado. Take my advice with a grain of salt.
Or, start searching for your dream home. Browse all of my office’s listings on our website: United Country Real Estate Western Land & Lifestyle Properties. If you see something you like, contact me to set up a showing.