Should I Sell My Denver Home Before it’s Too Late?
The U.S. economy has been growing faster over the last few years than any of us would have ever believed. The GDP is climbing at a steady 2-3 percent rate, right were economist say it should. There is really no inflation or deflation, for that matter and unemployment has stabilized at its natural rate of less than 4 percent. Economically it is good time to be an American. This is especially true if you have happen to be a homeowner in the Denver Metro Area.
With its steady growth fueled by higher than average wages in the area’s tech industries and near nonexistent unemployment, Denver has been one of the hottest housing markets in the nation for several years running. Just over the last 10 years, the average sales price of a home, in the area has more than doubled. To say it is a seller’s market is like saying the Rockies are mighty big hills.
With all this good news rolling around you might be wondering why any sane person would pick 2018 as the year to sell their Denver home. After all, the city is sitting on one of the nation’s longest running booms.
There are several reasons why now is the time to take the money and run.
Interest rates are on the rise
The interest rates on home mortgages are now running very low. According to Nerdwallet, the average 30-year fixed-rate mortgage is running around 4.17 percent. But, this isn’t expected to last much longer. One sure sign of a healthy economy, like we are presently seeing, is that the Federal Reserve Bank will start raising interest rates.
While there are no drastic changes expected, it doesn’t take but a shift of a few points to force many potential buyers out of the market. Fewer buyers will naturally lead to lower demand and falling prices.
Tax changes are coming
With the passing of the Tax Cuts and Jobs Act at the end of 2017 major changes in what property taxes and mortgage interest you will be allowed to deduct off your income taxes will undergo major changes. Beginning with the 2018 tax year, mortgage interest will only be allowed on the first $750,000 of your debt. Perhaps more significant to many residents of Metro Denver is that the Property Tax Deduction will now be capped at $10,000.
The possible effects of these changes are twofold. If you live in an area with high city and county property taxes you will very likely feel the crunch when paying your income tax bill in 2019. This makes the idea of collecting the capital gain from your home and reinvesting it in an area with lower tax rates an attractive idea.
The second effect is the flip side of the above. The changes in the tax code will make property in high tax areas less attractive to investors and home buyers alike. Again slowing the market and lowering demand.
The difference between a huge profit from your home and a loss is all in the timing and having the right realtor on your side. Denver has been sitting on a bubble for quite some time now and prices are at their peak. Changes are coming though and they are bound to have an impact on the market. If you have given any thought to selling your Metro Denver property, before they arrive is the time to move.
For more information contact Paul at ‘The Edge Group’. With 20+ years of real estate experience in the Denver area, he is the local expert on property values and market trends you can turn to with confidence. Call 303-886-5991 or email: firstname.lastname@example.org today.