The price of homes has been steadily increasing in Boulder County and Northern Colorado for years. As prices have risen, it has been more difficult for First Time Buyers to enter the real estate market. In a market like ours, it is important to get into the market as soon as possible.
There is an old saying, “You can’t out save the market”. That means no matter how hard you try; the prices will increase faster than you can save, especially for a down payment to make your first purchase. In 2024, more factors have been tossed into the works.
For instance: increased home values, property tax assessments and thus property taxes have increased significantly. Many properties have seen taxes go beyond 30%. Additionally, there’s an increased need and cost of insurance.
Due to huge fire and hail losses to insurance companies in Colorado, many property owners have seen insurance rates going up over 30%! Combine all three factors and you’ll find it costs much more to buy the same house than it did just a couple of years ago. The question is, “Will it get cheaper to buy a home?” Probably not! It is likely to continue to get more expensive. Therefore, it makes sense to do everything you can to get into the market, as soon as possible.
One option for First Time Buyers is to look for a co-signer. There are many ramifications of being a co-signer, making a close relative the best choice for a potential cosigner. However, even with a close relative, all parties involved need to.