Investing in Denver Real Estate
Is the Denver Market a Good Long-term Investment?
All real estate
markets are local... looking beyond the immediate
horizon - the Denver real estate market has proven itself to
be a good long-term investment and a safe, secure way to build
long-term wealth. Look at the stats below and read my
commentary at the bottom
for a little historical
perspective of home appreciation rates across the US.
Click here for Denver Metro Area MLS Trends & Statistics.
The
Six Benefits of Owning or Investing in Denver Real Estate
1. Tax
Deductions
2. Appreciation
3. Equity
4. Borrowing Power
5. Stability
6. Freedom
-
Over
the past 40 years, home values have risen 5% annually on average.
-
The
average homeowner's net worth is nearly 46 times that of
a renter!
-
Interest rates are still at
historic lows - 3.5% (30 year fixed with 3.5% down)
Change in FHFA
State House Price Indexes
(Seasonally Adjusted, Purchase-Only Index, 2012 Q3)
Region |
Rank |
1 Quarter |
1 Year |
5 Years |
Since 1991Q1 |
USA |
|
1.08 |
4.04 |
-15.37 |
87.86 |
AZ |
1 |
5.37 |
20.06 |
-36.72 |
93.49 |
DC |
2 |
6.99 |
15.53 |
10.68 |
284.36 |
ID |
3 |
2.32 |
9.57 |
-23.22 |
101.65 |
ND |
4 |
3.33 |
9.23 |
21.03 |
152.39 |
NV |
5 |
4.23 |
8.66 |
-50.86 |
22.78 |
UT |
6 |
1.91 |
8.63 |
-19.53 |
159.15 |
FL |
7 |
2.16 |
7.86 |
-35.92 |
84.55 |
CA |
8 |
1.98 |
7.24 |
-35.54 |
62.25 |
MI |
9 |
1.90 |
7.02 |
-16.16 |
52.30 |
CO |
10 |
2.13 |
6.57 |
-0.38 |
177.90 |
DE |
11 |
5.75 |
6.03 |
-17.37 |
83.70 |
GA |
12 |
1.65 |
5.98 |
-21.20 |
56.11 |
OR |
13 |
2.51 |
5.64 |
-22.17 |
161.97 |
TX |
14 |
0.94 |
5.58 |
4.33 |
98.27 |
HI |
15 |
0.88 |
5.50 |
-14.26 |
83.73 |
MT |
16 |
1.46 |
4.84 |
-5.92 |
197.50 |
SD |
17 |
1.42 |
4.80 |
5.38 |
132.67 |
MN |
18 |
1.88 |
4.67 |
-15.60 |
109.79 |
AR |
19 |
0.15 |
4.56 |
-4.92 |
85.83 |
OK |
20 |
1.27 |
4.18 |
1.40 |
96.74 |
WY |
21 |
2.10 |
4.00 |
-3.10 |
196.56 |
MS |
22 |
1.62 |
3.79 |
-7.25 |
78.25 |
WA |
23 |
1.80 |
3.71 |
-22.68 |
117.51 |
LA |
24 |
1.73 |
3.65 |
-1.34 |
132.81 |
SC |
25 |
0.90 |
3.47 |
-10.35 |
80.75 |
OH |
26 |
0.90 |
3.44 |
-9.73 |
55.55 |
KS |
27 |
1.34 |
2.97 |
-3.29 |
93.04 |
NE |
28 |
0.21 |
2.87 |
-1.00 |
97.21 |
VT |
29 |
1.46 |
2.80 |
-3.32 |
112.16 |
AL |
30 |
-1.51 |
2.72 |
-11.21 |
78.13 |
VA |
31 |
1.08 |
2.67 |
-13.17 |
114.18 |
IA |
32 |
1.00 |
2.57 |
-0.30 |
99.97 |
KY |
33 |
-0.16 |
2.53 |
-1.25 |
89.33 |
MO |
34 |
0.09 |
2.07 |
-10.95 |
82.87 |
MD |
35 |
-1.93 |
1.78 |
-22.06 |
106.90 |
TN |
36 |
0.09 |
1.77 |
-8.71 |
86.00 |
WV |
37 |
0.79 |
1.76 |
-2.07 |
90.08 |
NC |
38 |
0.89 |
1.52 |
-11.04 |
80.27 |
IN |
39 |
0.26 |
1.48 |
-5.29 |
60.28 |
NM |
39 |
-0.26 |
1.48 |
-13.75 |
108.99 |
MA |
41 |
0.72 |
0.74 |
-8.90 |
117.35 |
AK |
42 |
-0.24 |
0.70 |
1.34 |
127.13 |
PA |
43 |
0.27 |
0.18 |
-7.08 |
87.28 |
WI |
44 |
-0.34 |
0.08 |
-11.49 |
101.87 |
CT |
44 |
2.26 |
0.08 |
-15.27 |
67.21 |
IL |
46 |
0.51 |
-0.28 |
-18.33 |
71.81 |
NY |
47 |
-0.30 |
-0.36 |
-7.46 |
103.94 |
NJ |
48 |
-0.56 |
-1.07 |
-17.78 |
109.76 |
NH |
49 |
-1.64 |
-1.49 |
-17.35 |
89.92 |
RI |
50 |
-0.87 |
-1.56 |
-21.47 |
77.01 |
ME |
51 |
-2.04 |
-2.58 |
-9.95 |
99.25 |
As of September 2012, Colorado was ranked #10 in home appreciation with a
modest gain of 6.57% in the previous 12-month period. In the last
5-years, prices have remained relatively flat, but what's really
staggering is to see the 177.9% jump in Colorado home appreciation since
1991. Simply put, if you would have purchased a home in Colorado for
$100,000 in 1991, it would be worth $277,000 today!
If you would like to sit
down for coffee and discuss the
Arvada,
Colorado
Real Estate Market, just call me
anytime at 303-520-3179. Anthony Rael, RE/MAX Alliance offers professional & trustworthy real estate
services to buyers &
sellers throughout the
Denver metro area including
Arvada,
Brighton,
Broomfield,
Denver,
Golden,
Highland/Sloan's Lake,
Highlands Ranch,
Lakewood,
Littleton,
Louisville,
Longmont,
Thornton,
Westminster,
Wheat Ridge, Adams
County,
Denver County, Douglas County &
Jefferson County.
Leverage my life-long
knowledge of the Denver Metro area - from homes, condos, lofts or
investment properties, new homes builders, schools & local amenities to
reliable & trustworthy business partners like mortgage brokers & home
contractors to
maximize
your investment, secure your future and realize the home of your dreams.