2020 is a year we will never forget. The COVID-19 pandemic has undoubtedly forced many to reevaluate what home means to them. Today, home is more than a place to sleep. Home has quickly morphed into daycare, virtual offices and places to connect with those closest to you. While many small businesses and large industries have been adversely affected, Colorado’s real estate market has not only remained steady - with a slight dip during the early days of COVID-19 - but actually set home sale records.
A major contributor to the heightened real estate market is the historically low mortgage interest rates. A huge advantage for buyers and sellers alike, the current rates allow borrowers to finance for less, ultimately saving thousands over the long-term.
So, what exactly is the impact of these very low rates?
For buyers, this puts you in a very strong position. A couple of years ago, the principal and interest payment on a $300,000 loan at 4.09% would be around $1,441.62/month. Today, that same loan at 2.96% would be around $1,290.01/month! That is a savings of $151.61/month = $1819.32/year. That is more buying power if you are looking for a new home or it's money in your pocket if you’ve been thinking about refinancing your current home.
If you have any questions about the Boulder County Real Estate Market, reach out to me via the contact link here. At 8z Real Estate, we follow the market data and trends, and have the knowledge and local market strategies to best assist you in your real estate goals.
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