Housing Affordability is excellent in Denver now. Housing is 76% more affordable today than it was 5 years ago.
Prices have risen about 7% from the bottom in 2009 already.
According to Case-Shiller, Denver home prices have only dropped 14.3% since August 2006, good for 2nd best. The average national decline has been 33.1% (as of March 31, 2011).
At the peak (the summer of 2006), the average price of a Denver home was $317,000 and the average mortgage rate then was 6.75%. With 20% down, your Principal & Interest payment was $1635.
Today, the average price of a home is $284,000 with the average mortgage rate of around 4.0%. With 20% down, your Principal & Interest payment is just $1081 or $554 less.
That’s a decrease of 34%.
With interest rates decreasing, the risk of foreclosures decreases for those with adjustable rate mortgages because their interest rates will adjust down – instead of adjusting up.
The Housing Affordability calculation dropped to its low in July 2006 to 101. As of June 2011 the Index sits at 176.6, an increase of 76% since July 2006. That means that housing is 76% more affordable today than it was 5 years ago.
If you’d like to start looking at real estate opportunities, search here.
Credit goes to Lonnie Glessner at America’s Mortgage, LLC for his research and statistics in this article.