We're hearing more and more that this will be a very active year.
Jennifer, congratulations if you acted the advice you sought out here.
Sweeping statements generally are not helpful. A big part of the real estate market has belonged to the investor in recent years. People who have higher net worth believe in acting before the crowd arrives. For my area and Westminster, there are going to be opportunities - some better than others. You need a guide, Jennifer. That's what we do.
There are flipping opportunities as well as great rental opportunities out there.
Hope that helps.
There are always good pockets to invest in whether it be Westminster, Thornton, Arvada or Denver as long as the numbers work for your investment strategy.
I'm not sure I would agree that we are in a declining market however as our data shows that our Denver Metro market is quite stable. We are a little short on inventory in the below $400k price point but other than that, neither the buyer nor the seller have the upper hand which actually makes us feel normal.
I don't see investors doing quite as many fix-n-flips, however there is a great market for buy and hold property.
Let me know if you have any questions at all and feel free to use my website to search property.
REALTOR, CDPE, The Elite Team
Your Castle Real Estate
We cannot say what interest rates will do one way or another, there have been several predictions over the last several months and interest rates are still low today.
Westminster can be a good place to invest even in a declining market if you are refering to renting it out. If a home is able to cash flow from renters it isn't necessarily hurt in a declining market.
I'll happily help you if you'd like specific neighborhood analysis to answer your question.
I own two rental homes in Westminster. I bought them four and five years ago, hoping to hold for five to ten years and sell at a profit. Well . . . . that hasn't worked out! But I've learned a lot. I agree with other answers, that we expect things have or will soon hit bottom, so holding on to the properties for awhile has to be an option.
The most interesting thing to us has been the drastic change in the rental market. One or two years ago, when one of our homes became vacant, we knew we'd be making the payment for two or three months in order to find a good tenant. But this year, they both became vacant in January. We were a bit panicked, considering the time of year. But it was a madness. I took to announcing on my phone when I'd be there in blocks of two or three hours, and we'd have ten to twenty people stop by.
Some people wanted the application faxed to them without even seeing the house, because it was so hard to find something decent. (We keep our houses in good shape, but nothing fancy!) They were both rented in a week!
One house is a 2 bed, 1 bath with no garage and no basement which rents for $895, and the other is a 4 bed, 2 bath with garage and basement which rents for $1195. Both built in the 50s.
If you want to chat more, feel free to call.
As far as "declining market" goes, do you mean from a lenders point of view? It looks like every lender has a different system for determining that. And they are changing their criteria on a regular basis. Most neighborhoods in Westminster have seen a price decline from a year ago. Those of us watching the trends believe that we are bumping along the bottom of the market now, and will continue that way for about another year.
I can send you detailed price trends for Westminster. Just ask.
Your Castle Real Estate
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Despite what the media says, there are good signs that we are seeing with the current market. Fannie Mae just took off the declining market stipulation for their mortgages which is huge. The foreclosures are sure to be drying up here in a few months and analyists are predicting this market to be on the upswing.
If you would like to read more information about the Denver market, visit my website: http://www.LeslieHeldenbrand.com