Happy Halloween! It's been a while since I have dug out this blog, but I am getting a lot of feedback from clients that they're scared to buy in this market with the interest rates sitting between 7.5 and 8.5%. What better than Halloween than to talk about something that's scary?! Historically rates are not that bad, we have just been spoiled the past few years with super low rates, see the graph below, rates were near 18% in the beginning of the 80's! I know that house prices are much higher than they were in the 80's, but while people are waiting for a "market burst" that frankly may or may not come, house prices keep rising. Especially in the Northern Colorado market. I am hearing from those who rent that their rent is going up as well, as taxes go up and policies get implemented on landlords those additional fees are going to get pushed to the renter, this is just common sense. In this market the only people winning, and I say that with a sour taste in my mouth since the economy is hurting a ton of people right now, including my family, are those who own real estate. Fact is that my husband and I bought a new build in 2021 and today there is no possible way that we could afford to purchase our house today, that's how much equity we have built in under 3 years. If we weren't in the house we are in, I would still find a way to purchase something... Anything. A small condo, townhouse, real estate is real estate. If you're on the fence about buying in this market, don't be, just do it. I have a handful of lenders who can help make sure you are comfortable with your payment, just reach out and let's stop putting your money in someone else's pocket. Lastly, enjoy your Halloween and don't eat too much of the sweet stuff. ~Raven
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