There’s optimism blooming on the homebuying horizon: after a couple years of fast-paced home sales in Denver and Colorado, the real estate industry is calming down a bit. Don’t be misled, median sale prices in Denver are still quite high, but instead of rising in March, median sale prices fell 2.6 percent in a year to $415,000 for a condo and 5.5 percent to $599,900 for a house.

These costs are reflected in an older first-time homebuyer demographic nationally, which is now 36 years old.

This later age could be the result of first-time buyers receiving fewer financial gifts or personal loans from their family, roughly 22 percent in 2022, compared with 28 percent in the year before. However, family support is showing up in a different way, with 27 percent of first-time homebuyers moving directly from a family member’s home into homeownership; this is up from 21 percent the year before. This strategy often helps buyers save for a down payment.

The homebuyer demographic is also changing: many first-time buyers are single, and a growing number are buying a house with an unrelated friend (5 percent, which is the highest amount recorded). One-person Millennial households make up 13 percent of CHFA homeowners.

Thinking about entering the market? Become informed first.

1. Take homebuyer education before you get started. This class offers you the inside track on homebuying terms, financial fitness, and the homebuying landscape. Information gained will help you better understand the steps to homeownership, as well as the financial tools you need to be successful.

2.  Study your finances and develop a budget, not only to save for homeownership, but to understand your homebuying capacity and what mortgage amount you may be able to afford. Often, homebuyers qualify for more than they can reasonably afford. It is generally recommended you spend no more than 33 percent of your gross monthly income on your mortgage payment. Learn more with CHFA’s mortgage calculators.



3. Learn about available homeownership programs, including down payment assistance and grant programs. These programs may be able to help you with up-front costs, preventing you from delaying homeownership. CHFA offers up to 4 percent of your total mortgage loan with down payment assistance programs. Other organizations offer additional resources. This article features excellent resources.

Please reach out to CHFA if you have any questions about becoming a homebuyer or view our steps to homeownership. We are always happy to help you on your journey.

source: coloradosun.com