If you’re planning to purchase a home in Denver, Colorado, you might be wondering just how much money you should be spending on it. After all, this isn’t your first home and you already know what it takes to buy property. But it’s not as simple as just searching for properties and looking at the price tags next to them – there are other factors that you need to consider too! To help make sure that you spend the right amount of money on your home, we have put together this guide on how much should you be spending on home for sale Denver CO.
Market Overview
The median price of homes sold in your area. If you want to know how much to spend, you’ll need to figure out how much your down payment and closing costs will be. Let’s say you have $10,000 in savings and can scrape together an additional $5,000 for closing costs. That leaves you with a total of $15,000 as your budget for buying a home – without any help from a lender. Your housing budget is about 40% of that amount or about $6,667 per year. One way to lower that amount is to ask yourself if having a bigger house or yard is really worth it.
What’s The Current Average Home Price?
The cost of living in Denver is considerably higher than in other parts of Colorado, and therefore, it can be a challenge to make ends meet when you’re earning less than $20 an hour. According to Forbes, Denver is one of the most expensive cities for renting an apartment or buying a home. In addition to being fairly expensive, however, downtown Denver housing options are limited if you’re looking for something more affordable. The average rent for a two-bedroom apartment was $1,366 per month as of 2016, but if you want something closer to campus or along light rail lines—as most students do—expect that number to climb significantly.
The Average Cost of Living in Denver, CO
If you are planning to move to Denver, Colorado or if you are considering buying a home in one of its many neighborhoods, it is important that you familiarize yourself with how much you will be spending each month. It isn’t difficult to find a home for sale in Denver, but making sure that your future house payments will fit into your budget can help make your transition much easier. These are some key numbers when it comes to living in Denver: The median price of a single-family home is $13,800 while condos and town homes average at affordable. It costs an average of $1,609 per month to live here; housing takes up 28 percent of residents’ income each month.
Housing Affordability Index
While figuring out your home-buying budget, one of the most important factors is cost of living. After all, you can’t set a budget without knowing where you’ll be spending most of your money. You may think Denver is expensive, but other major cities are even more so! If you take into account things like rent, transportation and entertainment in addition to housing costs, you might be surprised by just how much more it can cost to live in another city – especially when compared to Denver.
Cost of living comparison between Denver and other major cities
It’s an often repeated adage in real estate that location is everything. In Colorado, that saying holds especially true: Prices for similar homes can vary significantly depending on where you look. To give you a better idea of just how much more (or less) a given home costs in a different city than Denver, we compared average monthly mortgage payments to median household income. The chart below shows results for six major cities—plus Denver—and includes another data point to show what homeownership would cost if mortgage payments were only 2% of household income.
Trends in home prices over the last 3 years in Denver
Over time, you should expect home prices to increase and fluctuate. These fluctuations are normal. Certain factors may cause your home’s value to increase more or less than in other areas, but that is normal and natural. Knowing what factors can affect home values will help you better understand how much your property may be worth when you decide to sell it. Interest rates: Decreasing interest rates may encourage people who were previously renting their homes to purchase a house for sale instead; if so, demand for housing increases and prices go up. Employment growth: A thriving economy typically means more jobs are available in a city (especially white-collar jobs), which leads people from surrounding areas to relocate there in search of work. More demand plus limited supply means rising home prices!
Home Value Predictions Over Next 5 Years
Homeowners may be surprised by recent data released by Zillow that found U.S. home values are expected to rise steadily over the next five years. The online real estate firm recently released its Zillow Home Value Forecast, which estimates that from December 2016 to December 2021, home values will increase by a cumulative 11 percent across America’s 100 largest metros. Because of recent growth, nearly half of those markets—41—are now expected to appreciate by double digits, including eight metro areas where values are predicted to grow more than 20 percent over five years.
